Sundaram fasteners ltd, a part of the TVS Group of Companies, is engaged in manufacturing critical, high precision components such as fasteners, power train components etc for the automotive, infrastructure, windmill, and aviation sectors.
Q3 FY26 Earnings Results
- Revenue from Operations: Consolidated ₹1,541 cr, +7% YoY vs ₹1,441 cr, record quarterly high; standalone ₹1,351 cr (+7.6% YoY vs ₹1,257 cr), driven by 18% domestic sales growth to ₹995 cr while exports dipped 15% to ₹308 cr due to global headwinds.
- EBITDA: Operating PBDIT ₹245 cr consolidated (+10% YoY), OPM 15.6% (−20 bps YoY, −48 bps QoQ); standalone margins squeezed by higher employee provisions under new Labour Codes and commodity pressures.
- PAT: Consolidated ₹131 cr (flat +0.2% YoY vs ₹130 cr, −13.5% QoQ vs ₹151 cr), PAT margin 8.5% (−155 bps QoQ); standalone ₹122 cr (+1.3% YoY); EPS ₹6.21 consolidated (flat YoY).
- Other key metrics: 9M consolidated revenue ₹4,596 cr (+19% YoY), PAT ₹431 cr (+3% YoY); capex ₹218 cr (9M), focused on EV/hybrid/non-auto; domestic OEMs strong, wind energy segment +35%.
Management Commentary & Strategic Decisions
- Revenue momentum sustained via domestic OEM ramp-up and product mix, but profitability flat amid margin contraction from Labour Code provisions, other income drop (₹12 cr vs ₹21 cr QoQ), and export softness; global uncertainties persist.
- Strategic moves: Board re-appointed Suresh Krishna (Non-Exec Dir), Arathi Krishna (MD) for 5 years; K Balasubramaniam as Sr. Mgmt; capex on track for FY26 at ~₹300 cr targeting EV/defence; 9M performance aligns with guidance.
Q2 FY26 Earnings Results
- Revenue from Operations: Consolidated ₹1,521 cr (+2.4% YoY vs ₹1,486 cr, +2% QoQ); standalone similar growth, domestic +10% YoY to ₹1,888 cr H1, exports down.
- EBITDA: ₹273 cr (+6% YoY), margin 18% (+61 bps YoY); H1 capex ₹150 cr on EV/hybrid/non-auto.
- PAT: Consolidated ₹153 cr (+6.2% YoY vs ₹144 cr); EPS ₹7.18 (+6% YoY); interim dividend ₹3.75/share (+25% YoY).
- Other key metrics: H1 revenue growth solid; EBITDA margin improved on mix, stable commodities; wind energy +35% traction.
Management Commentary Q2
- Steady growth with margin gains from favourable mix and pricing; domestic outperforms amid global caution.
- Strategic moves: Dividend hike signals confidence; capex prioritises growth areas like EV/defence; H1 sets positive FY26 base.
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.